Petar Ilievski

Intense Monday Coming for Rtg Ventures Inc.(PINK:RTGV)

by Petar Ilievski August 15, 2011
RTGV-logo.jpgOn the rise, catalysts at hand, pink sheets company - all goes in the file of Rtg Ventures Inc.(PINK:RTGV, RTGV message board). There is, however, a vast difference between the results from a "browse through" due diligence and a "thorough" one. Indeed, as the case is with most pink sheets out there. RTGV-15.08.11.png

So, what do we have at hand? A penny stock enterprise which performs well on the stock market with a more than 50% increase in the share price during the summer alone. After exiting sub-penny levels in April, it has been a slow and steady rise. Until the end of July. After reaching $0.0175 per share, a decline followed, which continues up-to-date. The Friday session, for example, closed at $0.0155 per share, the total trading volume for the day being a little over 200k shares. What is coming, however, is much interesting.

On Friday, after the session has closed, Rtg Ventures issued a press release which might sparkle emotions among current and potential shareholders. Yet to see its impact on the stock market on Monday. The week did not end on Friday, not for Rtg Ventures. Saturday and Sunday also received their deal of action. To be precise, a fair deal of people have received two promotional newsletters. One for each day, each paid with $2,500 by a third party. Together with the news from Friday, they form the team of catalysts to affect trading this week, or at least this Monday.

One fact not to go overlooked is that there was plenty of time for people to do some additional research on the company after reading the newsletters and/or the press releases. Most probably, the financial health of the company was of high interest, especially since there is a very recent 10-Q statement. It covers a period with an end-date May 31st this year and includes the following:

  • $104k in cash;
  • $186k in total current assets;
  • $1.8 million in total current liabilities;
  • $9.5 million in accumulated deficit;
  • $249k in sales;
  • $1.3 million in net profit;

One thing of interest - the last 3 months in question have a net loss, being a positive number (net profit). The nine months with an end-date May 31, 2011, however according to the same 10-Q, indicate a net loss of $2.1 million. There is the net loss of $748k for the six months with an end-date Feb. 28, 2011. So, it all comes down to the following:

  • $783k in net loss for Aug. 2010-Feb. 2011;
  • $2.1 million in net loss for Aug. 2010-May 2011;
  • $1.3 million in net profit for Feb. 2011-May 2011;
It might be possible, of course, that it is some missing brackets that create a confusion. Interesting data, nonetheless, which makes the stock performance today such of even higher interest, given the general uncertainty that comes along.

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